New Jersey-2012-S3011-Introduced

An Act adjusting the transfer inheritance tax's payment due date, amending R.S.54:35-3 and R.S.54:35-4 and supplementing Title 54 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. R.S.54:35-3 is amended to read as follows:

54:35-3. If such tax is not paid within [8] nine months after the date on which it became due and payable pursuant to R.S.54:35-1, the tax shall bear interest at the rate of 10% per annum from the expiration of [8] nine months after the date on which it became due and payable to the date when the tax is paid, unless, payment was tendered by the taxpayer within the [8 months] nine-month period and is evidenced by the postmark on the letter conveying the payment, or by other acceptable proof, but was not credited through no fault of the taxpayer, in which case no interest shall be charged, or unless, by reason of claims made upon the estate, necessary litigation or other unavoidable cause of delay, the decedent's estate, or a part thereof, cannot be settled before the expiration of [8] nine months from the date on which said tax became due and payable, in which case only 6% per annum shall be charged from the expiration of such [8] nine months until the cause of delay is removed; provided, however, that if the decedent shall have heretofore died or shall hereafter die while a member of the Armed Forces of the United States, no such tax shall commence to bear such interest until the expiration of [8] nine months after receipt of official notification of the death of the decedent by the wife, husband, father, mother, or next of kin of such decedent.

(cf: P.L.1978, c.172, s.2)

2. R.S.54:35-4 is amended to read as follows:

54:35-4. When executors, administrators, grantees, donees, vendees or trustees fail to pay the tax imposed by chapters 33 to 36 of this Title ([section] R.S.54:33-1 et seq.), within [8] nine months from the date on which said tax became due and payable pursuant to R.S.54:35-1, they shall be required to give a bond to the State of New Jersey in double the amount of the tax, conditioned to pay the tax and interest which may fall due, the bond to be approved as to form and sufficiency by the Director of the Division of Taxation.

(cf: P.L.1978, c.172, s.3)

3. (New section) Notwithstanding the provision of any law or regulation to the contrary, sections 1 and 2 of P.L. , c. (pending
before the Legislature as this bill) shall not be construed to restrict the enforceability of Chapter 26 of Title 18 of the New Jersey Administrative Code, except that each reference in Chapter 26 of Title 18 of the New Jersey Administrative Code to the preceding eight-month transfer inheritance tax payment period shall be read as a reference to the nine-month transfer inheritance tax payment period established by sections 1 and 2 of P.L. , c. (pending before the Legislature as this bill). This section shall expire upon the enactment of a subsequent transfer inheritance tax payment period.

4. This act shall take effect immediately and apply to transfer inheritance tax payments that become due on or after the date of enactment.

STATEMENT

This bill realigns the transfer inheritance tax payment due date to coincide with the payment due dates for the State and federal estate taxes. The purpose of this bill is to simplify New Jersey's inheritance tax filing procedures.

Generally, inheritance tax payments are due within the following periods:

New Jersey Transfer Inheritance Tax	-	8 Months after Death
New Jersey Estate Tax	-	9 Months after Death
Federal Estate Tax	-	9 Months after Death

This bill adjusts the final payment due date for the New Jersey transfer inheritance tax to within nine months following death so as to coincide with other inheritance tax payment due dates.